Telkom appoints Morgan Stanley to advise on float
Telkom appoints Morgan Stanley to advise on float
JAKARTA (JP): State-owned PT Telekomunikasi Indonesia (Telkom)
has appointed Morgan Stanley of the United States as its
financial advisor to support its plan to float shares on the New
York, London and Jakarta stock exchanges by the end of this year.
Telkom's president, Setyanto Santoso, said in a statement
released yesterday that Morgan Stanley will advise Telkom on its
long-term business and financing plans as well as on
telecommunication regulatory issues.
"Morgan Stanley will also advise the company on the valuation,
pricing, structuring and syndication of the global offering," he
said.
Morgan Stanley is a U.S. securities company providing a wide
range of financial and advisory services to major corporations,
institutions and government entities as well as private
investors.
Telkom announced last month that it had appointed Merrill
Lynch, Goldman Sachs, both of the United States, as well as S.G.
Warburg of Britain as global coordinators for its share issuance.
Four local securities companies -- state-owned Danareksa, PT
Makindo, PT Bahana and PT Jardine Flemming Nusantara -- were
assigned to act as coordinators for the sales of its shares on
the domestic exchanges.
Setyanto said yesterday that Morgan Stanley will play a role
in advising Telkom and helping the company liaise with the three
global coordinators and four domestic underwriters.
Director General for the Supervision of State Enterprises
Martiono Hadianto said last month that the "team of seven" -- the
government's special team set up to prepare the privatization of
state-owned companies -- had also appointed a number of
international bodies to support Telkom's public offering.
They include Arthur Andersen of the United States as the
auditor and Baker & McKenzie as the legal consultant.
Telkom's public offering will include the issuance of new
shares and the divestment of the government's stake. The funds to
be raised from the divestment of the government's equity in
Telkom will be used to prepay its high-interest foreign debts.
Telkom, which employs around 43,000 workers, recorded total
assets of around Rp 7 trillion (US$3.15 billion) as of last
December and a net profit of around Rp 418 billion last year.
Martiono said that the average income growth of the company
reached around 20 percent in the last five years. (riz)